nLIGHT, Inc. Announces Second Quarter 2024 Results

Revenues of $50.5 million for the second quarter of 2024

nLIGHT, Inc. (Nasdaq: LASR), a leading provider of high-power semiconductor and fiber lasers used in the industrial, microfabrication, and aerospace and defense markets, today reported financial results for the second quarter of 2024.

“Second quarter revenue of $50.5 million was at the upper end of our guidance range and increased 13% compared to the first quarter,” commented Scott Keeney, nLIGHT’s President & Chief Executive Officer. “Strong execution in directed energy and in existing laser sensing programs resulted in 26% quarter-over-quarter growth in our Aerospace & Defense business. We also announced a strategic partnership with EOS, an industry leader in additive manufacturing. Additive manufacturing remains a key growth area for nLIGHT and we believe our work with EOS positions us even better for long-term growth in this market.”

Mr. Keeney continued, “Higher volumes and a more favorable mix of business during the second quarter enabled us to increase products gross margin to 30%, above the high end of our guidance range. We generated approximately $7 million from cash flow from operations during the first six months of the year and we ended the quarter with approximately $115 million of cash and investments with no debt.”

Second Quarter 2024 Financial Highlights

 

Three Months Ended June 30,

 

 

(In thousands, except percentages)

2024

 

2023

 

% Change

Revenues

$

50,511

 

 

$

53,304

 

 

(5.2)%

Gross margin

 

23.5

%

 

 

22.7

%

 

 

Loss from operations

$

(12,690

)

 

$

(11,686

)

 

(8.6)%

Operating margin

 

(25.1

)%

 

 

(21.9

)%

 

 

Net loss

$

(11,729

)

 

$

(8,823

)

 

(32.9)%

Adjusted EBITDA(1)

$

(1,599

)

 

$

(150

)

 

NM*

Adjusted EBITDA, as a percentage of revenues

 

(3.2

)%

 

 

(0.3

)%

 

 

(1)

A reconciliation of the non-GAAP metrics presented here to the most directly comparable GAAP metric has been provided in the tables included at the end of this release.

*

Not meaningful

Revenues of $50.5 million for the second quarter of 2024 were down 5.2% compared to $53.3 million for the second quarter of 2023. Gross margin was 23.5% for the second quarter of 2024 compared to 22.7% for the second quarter of 2023. GAAP net loss for the second quarter of 2024 was $11.7 million, or $0.25 per diluted share, compared to net loss of $8.8 million, or $0.19 per diluted share, for the second quarter of 2023. Non-GAAP net loss for the second quarter of 2024 was $4.6 million, or $0.10 per diluted share, compared to non-GAAP net loss of $0.9 million, or $0.02 per diluted share, for the second quarter of 2023. Reconciliations of the non-GAAP metrics presented here to the most directly comparable GAAP metric have been provided in the tables included at the end of this release.

Outlook

For the third quarter of 2024, nLIGHT expects revenues to be in the range of $53 million to $58 million. The midpoint of $55.5 million includes Laser Products revenue of approximately $39.5 million and Advanced Development revenue of approximately $16 million. nLIGHT expects overall gross margin to be in the range of 22% to 26%, with Laser Products gross margin in the range of 28% to 32% and Advanced Development gross margin of approximately 8%. nLIGHT expects Adjusted EBITDA to be in the range of ($2) million to $1 million.

We have not reconciled our outlook for Adjusted EBITDA because unrealized and realized foreign exchange gains and losses cannot be reasonably calculated or predicted nor can the probable significance be determined at this time. Accordingly, a reconciliation is not available without unreasonable effort.

Investor Conference Call at 2:00 p.m. Pacific Time, Thursday, August 1, 2024

Parties interested in listening to nLIGHT’s quarterly conference call may do so by dialing 1-844-282-4705 (U.S., toll-free) or [phone] (international and toll), with the conference title: nLIGHT Second Quarter 2024 Earnings. The call can also be accessed via the web by going to nLIGHT’s Investor Relations page at http://investors.nlight.net.

Use of Non-GAAP Financial Results

In addition to U.S. GAAP results, this press release contains non-GAAP financial results, including Adjusted EBITDA, non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted. We use Adjusted EBITDA to help us evaluate our business, measure our performance, identify trends affecting our business, formulate business plans and make strategic decisions. In addition to our results determined in accordance with GAAP, we believe Adjusted EBITDA is a meaningful measure of performance as it is commonly utilized by us and the investment community to analyze operating performance in our industry. Similarly, we believe that providing non-GAAP net income (loss) and non-GAAP net income (loss) per share, basic and diluted, is useful to our investors as they present an informative supplemental view of our results from period to period by removing the effect of stock-based compensation expense and other non-recurring items. However, the non-GAAP metrics presented herein are specific to us and may not be comparable to similar metrics disclosed by other companies because of differing methods used by other companies in calculating them.

We define Adjusted EBITDA as net income (loss) adjusted for income tax expense (benefit), other non-operating income or expense, interest income or expense, depreciation and amortization, stock-based compensation, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) as GAAP net income (loss) adjusted for stock-based compensation, amortization of purchased intangibles, acquisition and integration-related costs, and other non-recurring items as determined by management, as applicable. We define non-GAAP net income (loss) per share, basic and diluted, as non-GAAP net income (loss) divided by the weighted-average number of shares outstanding during the respective period plus the dilutive effect of any common stock equivalents during the period in the case of non-GAAP net income (loss) per share, diluted.

Tables presenting the reconciliation of net loss to Adjusted EBITDA, as well as the reconciliation of GAAP to non-GAAP net income (loss) and GAAP to non-GAAP net income (loss) per share, basic and diluted, are included at the end of this press release.

Safe Harbor Statement

Certain statements in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995. Words such as “outlook,” “guidance,” “expects,” “intends,” “projects,” “plans,” “believes,” “estimates,” “targets,” “anticipates,” and similar expressions may identify these forward-looking statements. Examples of forward-looking statements include, but are not limited to, statements regarding expected revenues, gross margin, and Adjusted EBITDA, and our business strategy and ability to profitably grow our business, as well as any other statement that does not directly relate to any historical or current fact. Forward-looking statements are based on our current expectations and assumptions, which may not prove to be accurate. These statements are not guarantees and are subject to risks, uncertainties and changes in circumstances that are difficult to predict. Many factors could cause actual results to differ materially and adversely from these forward-looking statements, including but not limited to our ability to compete successfully in the markets for our products; changes in the markets we serve or in the global economy; our ability to increase our volumes and decrease our costs to offset potential declines in the average selling prices of our products; rapid technological changes in the markets that we participate in; our ability to develop and maintain products that can achieve market acceptance; our ability to generate sufficient revenues to achieve or maintain profitability in the future; our high levels of fixed costs and inventory and their effect on our gross profits and results of operations if demand for our products declines or we maintain excess inventory levels; our ability to manage growth and spending during economic downturns; our manufacturing capacity and operations and their suitability for future levels of demand; our reliance on third parties to manufacture certain of our products and product components; our reliance on a small number of customers for a significant portion of our revenues; our ability to manage risks associated with international customers and operations; the effect of government export and import controls on our ability to compete in international markets; our ability to protect our proprietary technology and intellectual property rights; fluctuations in our quarterly results of operations and other operating measures; and the effect on our business of claims, lawsuits, government investigations, other legal or regulatory proceedings, or commercial or contractual disputes that we are or may become involved in. Additional information concerning these and other factors can be found in nLIGHT's filings with the Securities and Exchange Commission (the “SEC”), including other risks, relevant factors and uncertainties identified in the “Risk Factors” section of nLIGHT's most recent Annual Report on Form 10-K or subsequent filings with the SEC. nLIGHT undertakes no obligation to update publicly or revise any forward-looking statements contained herein to reflect future events or developments, except as required by law.

The nLIGHT logo and “nLIGHT” are registered trademarks or trademarks of nLIGHT, Inc. in various jurisdictions.

About nLIGHT

nLIGHT, Inc. is a leading provider of high-power semiconductor and fiber lasers for industrial, microfabrication, aerospace and defense applications. Our lasers are changing not only the way things are made but also the things that can be made. Headquartered in Camas, Washington, nLIGHT employs over 900 people with operations in the U.S., China, Finland, Korea and Italy. For more information, please visit www.nlight.net.

nLIGHT, Inc.

 

Consolidated Statements of Operations

(In thousands, except per share data)

(Unaudited)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Revenue:

 

 

 

 

 

 

 

Products

$

34,458

 

 

$

39,592

 

 

$

63,828

 

 

$

80,699

 

Development

 

16,053

 

 

 

13,712

 

 

 

31,210

 

 

 

26,696

 

Total revenue

 

50,511

 

 

 

53,304

 

 

 

95,038

 

 

 

107,395

 

Cost of revenue:

 

 

 

 

 

 

 

Products

 

24,011

 

 

 

28,272

 

 

 

47,242

 

 

 

55,798

 

Development

 

14,650

 

 

 

12,924

 

 

 

28,458

 

 

 

25,226

 

Total cost of revenue(1)

 

38,661

 

 

 

41,196

 

 

 

75,700

 

 

 

81,024

 

Gross profit

 

11,850

 

 

 

12,108

 

 

 

19,338

 

 

 

26,371

 

Operating expenses:

 

 

 

 

 

 

 

Research and development(1)

 

11,736

 

 

 

12,004

 

 

 

22,395

 

 

 

23,305

 

Sales, general, and administrative(1)

 

12,804

 

 

 

11,790

 

 

 

24,351

 

 

 

22,959

 

Total operating expenses

 

24,540

 

 

 

23,794

 

 

 

46,746

 

 

 

46,264

 

Loss from operations

 

(12,690

)

 

 

(11,686

)

 

 

(27,408

)

 

 

(19,893

)

Other income:

 

 

 

 

 

 

 

Interest income, net

 

459

 

 

 

350

 

 

 

914

 

 

 

687

 

Other income, net

 

622

 

 

 

1,057

 

 

 

1,263

 

 

 

1,461

 

Loss before income taxes

 

(11,609

)

 

 

(10,279

)

 

 

(25,231

)

 

 

(17,745

)

Income tax expense

 

120

 

 

 

(1,456

)

 

 

264

 

 

 

(1,192

)

Net loss

$

(11,729

)

 

$

(8,823

)

 

$

(25,495

)

 

$

(16,553

)

Net loss per share, basic

$

(0.25

)

 

$

(0.19

)

 

$

(0.54

)

 

$

(0.36

)

Net loss per share, diluted

$

(0.25

)

 

$

(0.19

)

 

$

(0.54

)

 

$

(0.36

)

Shares used in per share calculations:

 

 

 

 

 

 

 

Basic

 

47,658

 

 

 

45,717

 

 

 

47,450

 

 

 

45,580

 

Diluted

 

47,658

 

 

 

45,717

 

 

 

47,450

 

 

 

45,580

 

(1)Includes stock-based compensation as follows:

 

 

 

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Cost of revenues

$

659

 

$

663

 

$

1,200

 

$

1,363

Research and development

 

2,175

 

 

 

2,826

 

 

 

3,788

 

 

 

4,924

 

Sales, general, and administrative

 

4,169

 

 

 

4,026

 

 

 

7,446

 

 

 

6,731

 

 

$

7,003

 

 

$

7,515

 

 

$

12,434

 

 

$

13,018

 

nLIGHT, Inc.

 

Condensed Consolidated Balance Sheets

(In thousands)

(Unaudited)

 

As of

 

June 30, 2024

 

December 31, 2023

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

49,386

 

 

$

53,210

 

Marketable Securities

 

65,173

 

 

 

59,672

 

Accounts receivable, net

 

32,192

 

 

 

39,585

 

Inventory

 

52,321

 

 

 

52,160

 

Prepaid expenses and other current assets

 

13,432

 

 

 

15,927

 

Total current assets

 

212,504

 

 

 

220,554

 

Restricted cash

 

257

 

 

 

256

 

Lease right-of-use assets

 

11,934

 

 

 

12,616

 

Property, plant and equipment, net

 

49,428

 

 

 

52,300

 

Intangible assets, net

 

1,130

 

 

 

1,652

 

Goodwill

 

12,377

 

 

 

12,399

 

Other assets, net

 

6,669

 

 

 

7,026

 

Total assets

$

294,299

 

 

$

306,803

 

 

 

 

 

Liabilities and Stockholders’ Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

13,360

 

 

$

12,166

 

Accrued liabilities

 

12,894

 

 

 

12,556

 

Deferred revenue

 

5,651

 

 

 

4,849

 

Current portion of lease liabilities

 

2,930

 

 

 

3,181

 

Total current liabilities

 

34,835

 

 

 

32,752

 

Non-current income taxes payable

 

5,505

 

 

 

5,391

 

Long-term lease liabilities

 

10,452

 

 

 

10,978

 

Other long-term liabilities

 

3,975

 

 

 

3,263

 

Total liabilities

 

54,767

 

 

 

52,384

 

Stockholders' equity:

 

 

 

Common stock - par value

 

16

 

 

 

16

 

Additional paid-in capital

 

531,822

 

 

 

521,184

 

Accumulated other comprehensive loss

 

(2,507

)

 

 

(2,477

)

Accumulated deficit

 

(289,799

)

 

 

(264,304

)

Total stockholders’ equity

 

239,532

 

 

 

254,419

 

Total liabilities and stockholders’ equity

$

294,299

 

 

$

306,803

 

nLIGHT, Inc.

 

Consolidated Statements of Cash Flows

(In thousands)

(Unaudited)

 

Six Months Ended June 30,

 

2024

 

2023

Cash flows from operating activities:

 

 

 

Net loss

$

(25,495

)

 

$

(16,553

)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

Depreciation

 

6,240

 

 

 

6,230

 

Amortization

 

2,241

 

 

 

1,768

 

(Increase) reduction in carrying amount of right-of-use assets

 

669

 

 

 

292

 

Provision for losses on (recoveries of) accounts receivable

 

467

 

 

 

(2

)

Stock-based compensation

 

12,434

 

 

 

13,018

 

Loss on disposal of property, plant and equipment

 

44

 

 

 

—

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

6,869

 

 

 

(8,449

)

Inventory

 

(167

)

 

 

2,197

 

Prepaid expenses and other current assets

 

2,479

 

 

 

951

 

Other assets, net

 

(1,399

)

 

 

(319

)

Accounts payable

 

1,438

 

 

 

(941

)

Accrued and other long-term liabilities

 

1,134

 

 

 

158

 

Deferred revenues

 

818

 

 

 

(46

)

Lease liabilities

 

(764

)

 

 

(374

)

Non-current income taxes payable

 

137

 

 

 

(1,393

)

Net cash provided by operating activities

 

7,145

 

 

 

(3,463

)

Cash flows from investing activities:

 

 

 

Purchases of property, plant and equipment

 

(3,702

)

 

 

(1,640

)

Purchase of marketable securities

 

(54,506

)

 

 

(59,273

)

Proceeds from maturities and sales of marketable securities

 

49,265

 

 

 

50,089

 

Net cash used in investing activities

 

(8,943

)

 

 

(10,824

)

Cash flows from financing activities:

 

 

 

Proceeds from employee stock plan purchases

 

1,355

 

 

 

1,220

 

Proceeds from stock option exercises

 

137

 

 

 

332

 

Tax payments related to stock award issuances

 

(3,288

)

 

 

(3,132

)

Net cash used in financing activities

 

(1,796

)

 

 

(1,580

)

Effect of exchange rate changes on cash

 

(229

)

 

 

(139

)

Net increase (decrease) in cash, cash equivalents and restricted cash

 

(3,823

)

 

 

(16,006

)

Cash, cash equivalents and restricted cash, beginning of period

 

53,466

 

 

 

58,078

 

Cash, cash equivalents and restricted cash, end of period

$

49,643

 

 

$

42,072

 

Supplemental disclosures:

 

 

 

Cash paid for interest, net

$

20

 

 

$

20

 

Cash paid for income taxes

 

307

 

 

 

262

 

Operating cash outflows from operating leases

 

2,042

 

 

 

1,931

 

Right-of-use assets obtained in exchange for lease liabilities

 

882

 

 

 

1,197

 

Accrued purchases of property, equipment and patents

 

518

 

 

 

1,157

 

Reconciliation of cash, cash equivalents, and restricted cash:

 

 

 

Cash and cash equivalents

$

49,386

 

 

$

41,818

 

Restricted cash

 

257

 

 

 

254

 

Total cash, cash equivalents, and restricted cash

$

49,643

 

 

$

42,072

 

nLIGHT, Inc.

 

Reconciliation of GAAP Financial Metrics to Non-GAAP

(In thousands, except per share data)

(Unaudited)

Reconciliation of Net Loss to Adjusted EBITDA

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Net loss

$

(11,729

)

 

$

(8,823

)

 

$

(25,495

)

 

$

(16,553

)

Income tax expense

 

120

 

 

 

(1,456

)

 

 

264

 

 

 

(1,192

)

Other income, net

 

(622

)

 

 

(1,057

)

 

 

(1,263

)

 

 

(1,461

)

Interest income, net

 

(459

)

 

 

(350

)

 

 

(914

)

 

 

(687

)

Depreciation and amortization

 

4,088

 

 

 

4,021

 

 

 

8,481

 

 

 

7,998

 

Stock-based compensation

 

7,003

 

 

 

7,515

 

 

 

12,434

 

 

 

13,018

 

Adjusted EBITDA

$

(1,599

)

 

$

(150

)

 

$

(6,493

)

 

$

1,123

 

Reconciliation of GAAP to Non-GAAP Net Loss, and GAAP to Non-GAAP Net Loss per Share, Basic and Diluted

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

2024

 

2023

 

2024

 

2023

Net loss

$

(11,729

)

 

$

(8,823

)

 

$

(25,495

)

 

$

(16,553

)

Add back:

 

 

 

 

 

 

 

Stock-based compensation(1)

 

7,003

 

 

 

7,515

 

 

 

12,434

 

 

 

13,018

 

Amortization of purchased intangibles(1)

 

148

 

 

 

384

 

 

 

297

 

 

 

768

 

Non-GAAP net loss

 

(4,578

)

 

 

(924

)

 

 

(12,764

)

 

 

(2,767

)

 

 

 

 

 

 

 

 

GAAP weighted-average shares outstanding

 

47,658

 

 

 

45,717

 

 

 

47,450

 

 

 

45,580

 

Participating securities

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-GAAP weighted-average number of shares, basic

 

47,658

 

 

 

45,717

 

 

 

47,450

 

 

 

45,580

 

Dilutive effect of common stock equivalents

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Non-GAAP weighted-average number of shares, diluted

 

47,658

 

 

 

45,717

 

 

 

47,450

 

 

 

45,580

 

 

 

 

 

 

 

 

 

Non-GAAP net loss per share, basic and diluted

$

(0.10

)

 

$

(0.02

)

 

$

(0.27

)

 

$

(0.06

)

(1)

There is no income tax effect related to the stock-based compensation and amortization of purchased intangibles adjustments due to the full valuation allowance in the United States.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240801695121/en/

Joseph Corso Chief Financial Officer nLIGHT, Inc. [phone] [e-mail]